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Suppose that a nation has a labor force of 100 people. In January, Amy, Barbara, Carine, and
Denise are unemployed; in February, those four find jobs, but Evan, Francesco, George, and
Horatio become unemployed. Suppose further that every month, the previous four who were
unemployed find jobs and four different people become unemployed. Throughout the year,
however, the same three people- Ito, Jack, and Kelley-continually remain unemployed because
their skills are a poor match with employers' requirements
Solution
Though there is no question posted, but I guess you must be looking for unemployment rate.
So in total 4 + 3 people out of 100 are unemployed, so unemployment rate is 7%.
Out of this 7%, 3% (Ito, Jack, and Kelley) are unemployed because of the economic structure
and 4% (u enemployed) because of frictional nature i.r they are unemplyed because they left
their jobs to find better ones.

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Suppose that a nation has a labor force of 100 people. In January, A.pdf

  • 1. Suppose that a nation has a labor force of 100 people. In January, Amy, Barbara, Carine, and Denise are unemployed; in February, those four find jobs, but Evan, Francesco, George, and Horatio become unemployed. Suppose further that every month, the previous four who were unemployed find jobs and four different people become unemployed. Throughout the year, however, the same three people- Ito, Jack, and Kelley-continually remain unemployed because their skills are a poor match with employers' requirements Solution Though there is no question posted, but I guess you must be looking for unemployment rate. So in total 4 + 3 people out of 100 are unemployed, so unemployment rate is 7%. Out of this 7%, 3% (Ito, Jack, and Kelley) are unemployed because of the economic structure and 4% (u enemployed) because of frictional nature i.r they are unemplyed because they left their jobs to find better ones.